APA-Dar es Salaam (Tanzania) Tanzania has finally approved the Kenya Commercial Bank to set up an Amana Islamic suite, a form of Islamic banking, in the country, APA learn here Monday.
According to the KCB-Tanzania head of retail banking, Gloria Nyambok, the approval will see the bank introduce the second phase of the Amana suite comprising loan products.
Nyambok added that “the bank consulted an Islamic panel of leading scholars to guide the product development process.”
She said the bank has agreed to abide by the stringent guidelines set by the National Muslim Council of Tanzania.
Among these are the establishment of an Amana Banking Advisory Board to oversee the product and the appointment of Shariah-compliance officers.
Muslims make up more than 50 percent of Tanzania’s population.
Existing banking rules have hindered the introduction of Islamic banking in the past – till now.
The Islamic faith prohibits its members from earning interest on their accounts in any way. Giving and receiving as well as witnessing interest are all prohibited.
Islamic banking products, therefore, do not pay interests on deposits nor demand or receive interest from borrowers.